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May 13, 2005

When proprietary software goes open source

David Berlind interviews Marc Fleury and discusses IBM's Gluecode acquisition.

This "paranoia" proves one thing that the open source business model rides as much on the novelty as much on having strong proprietary license based competitors.  You remove that competition and suddenly high-priced service model falls flat on its face. Selection moves to other ecosystem variables such as tools, adoptions, developer count, third party tools etc.

Also it's very hard to sustain brand-based  revenue margin when the market is full of open source components of the same category. JBoss will have a real challenge now. When the market for J2EE itself is maturing and other stacks are rapidly maturing, selection becomes more tricky.

Different markets buy for different reasons - low end goes for least hassle/low cost  and high end prefers certification/indemnification/mission-critical support. Hard to ignore IBM's pitch on the high-end of the market.

This is getting very interesting now.

May 13, 2005 in Open source | Permalink

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